Being an entrepreneur in Singapore is fun – until the point when it comes to paper work. And when it hits it strikes a blow. In all of the companies incorporated in this case, the law obliges every company to appoint a company secretary within six months of incorporation. No exceptions. The Accounting and Corporate Regulatory Authority (ACRA) is not going to work around a hectic schedule and non-compliance implies actual punishment. Learn more here!
Here is where most founders fail, they make the role of secretary of the company as a check in box. Locate the cheapest that you have found, get them registered and proceed. Such an attitude is expensive.
An efficient company secretary can do much more than just file annual returns. Consider them your support of compliance. They keep statutory registers, draft board resolutions, arrange AGMs and keep track of important regulatory deadlines. One filing default will provoke fines, disqualification of directors or even closing down of the company as a serious act.
Then what exactly ought a professional company secretary service to include?
At the very least, assume statutory maintenance of the registers, preparation, and submission of ACRA filing, AGM organization, the firm control of the change of directors and shareholders, and Companies Act advice. There are also some providers of corporate governance advice. Others don’t. Get to know precisely what you are paying, and then sign anything.
Pricing varies considerably. Simple packages begin at SGD 300500/year. Full services including transfers of shares, numerous filings and continuing advisory services may cost SGD 1000 or more. A mid-range package can be a good compromise of coverage and cost to most SMEs.
A brief note about doing it yourself: although technically available, BizFile+ portal of ACRA is supported by complex filing regulations, deadlines are rigid and even a small mistake in a register record or a resolution may lead to severe inconveniences in the future. In almost all cases except when compliance is your strong suit outsourcing is the financially smarter option.
One of the most important things is that your company secretary should be either an individual who is habitually a citizen of Singapore, or a locally registered company. When the remote-only provider is located abroad, they merely do not pass the legal threshold. Check this and then commit.
Responsiveness is of utmost importance when assessing providers. When a commonplace question needs an answer, a secretary will be a liability when something urgent occurs, a share restructure or an abrupt change of board. Ask point-blank questions: how much do they respond in an average, and what is the number of clients each staff member has?
Your reputation of your company is safeguarded by your administrative infrastructure. Take it seriously.